FinancingThe price indicates where the company expects the price to go, up.
TORONTO, ONTARIO, Jun 15, 2010 (Marketwire via COMTEX) --Halo Resources Ltd. (HLO)(the "Company") is pleased to announce a non-brokered private placement(the "Private Placement") to raise gross proceeds of $500,000.00through the sale of 10,000,000 flow-through units ("FT Units") at aprice of
.05 per FT Unit to the MineralFields Group. Each FT Unit willbe comprised of one common share of the Company to be issued on a"flow-through" basis under the Income Tax Act (Canada) and one-half ofone common share purchase warrant (each whole warrant a "Warrant"). Eachwhole Warrant will be exercisable to acquire one additionalnon-flow-through common share of the Company at any time for a two yearperiod following issuance, at an exercise price of
.10 per share inthe first year and
.12 per share in the second year.
"We are very pleased to renewing our relationship with MineralFieldsGroup," said Marc Cernovitch, Chairman of the Company. "This is animportant milestone in the growth of the Company and we look forward toworking with MineralFields Group as we develop our mineral explorationholdings."
In connection with the Private Placement, the Company will pay anarm's length finder (the "Finder") a cash finder's equal to 5% of thegross proceeds from the Private Placement. In addition, the Finder willreceive compensation warrants ("Finder Warrants") exercisable, for aperiod of two years, to acquire such number of units ("Finder's Units")as is equal to 10% of the number of FT Units sold under the PrivatePlacement, at a price of
.05 per Finder's Unit. The Finder's Unitswill have the same attributes as the FT Units, provided that the commonshares comprising part of the Finder's Units will be non-flow-throughshares.
All securities issued in connection with the Private Placement willbe subject to a four-month hold period pursuant to applicable securitieslaws.
The funds from the Private Placement will be used for exploration ofthe Company's properties. The Private Placement is scheduled to close ona date to be agreed to by the Company and MineralFields Group (the"Closing Date") and is subject to the approval of the TSX VentureExchange. All securities issued in the Private Placement will be subjectto a four month hold period commencing on the ClosingDate.